What risks could derail GILD's EPS momentum in 2025?

While Gilead Sciences (GILD) has demonstrated strong EPS momentum, there are several risks that could derail this trend in 2025: 1. **Pipeline Setbacks**: GILD's stock performance has been impacted by pipeline setbacks in the past. If similar issues arise, particularly in the HIV space where the company has a significant presence, it could lead to a decline in investor confidence and affect EPS growth. 2. **Veklury Sales Decline**: The success of GILD's EPS growth has been partly attributed to the sales of Veklury (COVID-19 treatment). A decline in demand for Veklury or increased competition in the COVID-19 treatment market could negatively impact EPS. 3. **Increased R&D Expenses**: GILD has faced challenges with increased research and development expenses. If these costs continue to rise, they could offset any gains in EPS and impact the company's financial performance. 4. **Tariff and Trade Policy Risks**: The pharmaceutical industry, including GILD, is subject to tariffs and trade policies. Changes in these policies or new tariffs could affect GILD's manufacturing capabilities and business strategy, potentially impacting EPS. 5. **Competition and Market Dynamics**: GILD faces competition from other biotech companies, especially in the HIV space where market share is crucial. Intense competition could lead to pricing pressures and impact revenue and EPS growth. 6. **Regulatory Challenges**: The biotech industry is heavily regulated, and GILD has faced regulatory milestones and approvals. Any delays or rejections in the regulatory process for new drugs or treatments could disrupt EPS growth. 7. **Financial Performance Variations**: GILD's EPS growth has been supported by strong financial performance, particularly in the HIV and oncology segments. Variations in these segments' performance could affect overall EPS momentum. In summary, while GILD has a strong foundation, risks related to pipeline performance, market dynamics, and regulatory factors could potentially derail its EPS momentum in 2025.